08.04.2025 08:00
U.S. President Trump announced that if China does not withdraw its 34% tax increase, an additional 50% tax will be imposed on Chinese products starting from April 9. In response, China stated that "resolute countermeasures will be taken."
The President of the United States, Donald Trump, announced that no agreement will be reached with China until the issue of the trade deficit is resolved. In a statement made through his Truth Social account, Trump indicated that investors need to "accept" the effects of tariffs and threatened to impose an additional 50% tariff on China.
STOCK MARKETS ENTERED A CRISIS
The developments triggered the most severe wave of selling since the 2008 crisis; there were sharp declines in stock markets, a collapse in cryptocurrencies, and rapid losses in commodity markets. Investors have begun to expect an emergency interest rate cut from the Fed.
"CHINA WILL RESPOND"
In a statement from the Chinese Ministry of Commerce, it was noted that China opposes the U.S. tariff increases and will resist any steps to further raise tariffs. The statement recorded that the U.S. insists on its mistake with the threat of tariffs and once again reveals its coercive nature, stating, "If the U.S. continues down this path, China will respond with determined countermeasures until the end."
In a statement from the People's Bank of China, it was emphasized that if necessary, support for borrowing will be provided to ensure the stability of the capital markets.
WHAT HAPPENED?
China's move came after U.S. President Donald Trump announced that he would impose an additional 34% customs tariff on China under "reciprocal tariffs."
The Washington administration had announced that an additional 34% customs tariff would be imposed, consisting of a 10% base tariff plus a 24% "reciprocal tariff" on China.
With the new tariff increases, the minimum customs tariff applied by the U.S. on products imported from China had risen to 54%.
China was the first country to react to the U.S. tariff increases, announcing that it would impose an additional tariff of the same rate against the 34% tariff increase.
The Beijing administration also filed a lawsuit against the U.S. at the World Trade Organization, imposed restrictions on the export of certain rare earth elements, and announced sanctions against U.S. companies.
In response, U.S. President Trump stated that if China does not withdraw the additional 34% tariff increase it imposed in retaliation for the reciprocal tariffs by April 8, he would impose an additional 50% tariff and cancel the planned talks with China.